SHANDONG WEIDA(SZ:002026) Guohai Securities·2025-10-30 10:39Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Insights - The company reported steady performance in Q3 2025, with a potential for a second growth curve to open up [4][5] - The company achieved a revenue of 1.439 billion yuan in the first three quarters of 2025, a year-on-year decrease of 11%, while the net profit attributable to the parent company was 230 million yuan, a year-on-year increase of 15% [4] - In Q3 2025, the company recorded a revenue of 525 million yuan, a year-on-year decrease of 2% but a quarter-on-quarter increase of 11%, with a net profit of 72 million yuan, a year-on-year increase of 31% [4] Summary by Sections Recent Performance - In Q3 2025, the company maintained a quarter-on-quarter revenue growth of 11% despite being in the off-season for electric tools [5] - The company's overseas production capacity is gradually being released, with significant revenue growth from its Vietnam factory (139% year-on-year) and the commencement of production in Mexico [5] Market Conditions - The Federal Reserve's decision to restart interest rate cuts is expected to sustain strong demand for electric tool accessories, with market expectations of two additional rate cuts in 2025 [5] - Retail inventory levels at major retailers indicate a continued replenishment cycle for electric tools, supporting high shipment levels for the company [5] Financial Health - The company reported a net operating cash flow of 275 million yuan in the first three quarters of 2025, a year-on-year increase of 177%, with cash on hand amounting to 1.774 billion yuan by the end of Q3 [5] - The company is expected to expand into emerging businesses such as battery swapping stations, machine tools, and energy storage batteries, potentially opening a second growth curve [5] Earnings Forecast - The company is projected to achieve revenues of 2.115 billion yuan, 2.378 billion yuan, and 2.645 billion yuan for the years 2025, 2026, and 2027, respectively, with net profits of 345 million yuan, 392 million yuan, and 432 million yuan [7][8] - Corresponding P/E ratios for these years are estimated at 20.07x, 17.65x, and 16.03x, respectively [5][8]